A company purchases equipment at the beginning of the year a…
A company purchases equipment at the beginning of the year at a cost of $44,200. The equipment’s useful life is estimated at 10 years, or 393,000 units of product, with a $5,000 salvage value. During its second year, the equipment produces 33,200 units of product. Determine the equipment’s second-year depreciation and year-end book value under the straight-line method.
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